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July 9th - A report from Bank of Japan (BOJ) branch governors at Thursdays meeting showed that the Japanese economy remains robust overall despite headwinds including Middle East tensions, rising oil prices, and a weak yen. The BOJ stated that logistical disruptions and raw material shortages caused by geopolitical risks have put pressure on exports and production. The bank added that the risk of a sharp economic downturn has diminished due to the implementation of alternative procurement programs and adjustments to transportation routes. This could strengthen market expectations for further interest rate hikes in the near term. Overnight index swap market pricing currently indicates that the market expects at least one more BOJ rate hike before the end of this year.Yields on UK government bonds of all maturities fell by about 4-6 basis points in early trading.On Thursday, July 9th, the German DAX 30 index opened 247.33 points higher, or 0.99%, at 25113.00; the UK FTSE 100 index opened 30.04 points lower, or 0.29%, at 10459.00; the French CAC 40 index opened 59.35 points higher, or 0.72%, at 8312.01; the Euro Stoxx 50 index opened 56.94 points higher, or 0.92%, at 6261.85; the Spanish IBEX 35 index opened 211.39 points higher, or 1.11%, at 19260.69; and the Italian FTSE MIB index opened 418.25 points higher, or 0.81%, at 52235.50.Gold prices rebounded above $4,100 an ounce on July 9th after Wednesdays sell-off. This rally was supported by a weaker dollar and renewed geopolitical tensions in the Middle East following Wednesdays renewed clashes between the US and Iran. However, rising energy prices could complicate the inflation outlook, reinforcing market expectations that the Federal Reserve will maintain high interest rates for a longer period or raise rates further. The minutes of the Feds mid-June policy meeting highlighted a hawkish shift within the committee, putting pressure on precious metals. Thomas Ryan, an economist at Capital Economics, said, "The minutes reiterated that the door to a September rate hike remains very open."According to Futures News on July 9th, as of 15:00 Beijing time, spot platinum rose 1.86% and spot palladium rose 1.78%.

The Pentagon Requests Funding For Mining Ventures in Australia And The U.K.

Charlie Brooks

May 12, 2022 09:39

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The U.S. Department of Defense has requested funding for facilities in the United Kingdom and Australia that process key minerals used in the production of electric vehicles and weapons, deeming the proposal vital to national security.


The request to amend the Cold War-era Defense Production Act (DPA) was part of the Pentagon's recommendations to Congress on how to draft the next National Defense Authorization Act, a military financing law.


When it finalizes the bill later this year, Congress may approve or reject the suggested amendments.


Washington is making more efforts to lessen the United States' reliance on China for lithium, rare earths, and other minerals required in the production of a variety of technology. Existing legislation prohibits the use of DPA money to excavate new mines, but they can be used for processing equipment, feasibility studies, and facility renovations. Currently, only American and Canadian facilities are eligible for DPA funding.


The Pentagon stated in its request to Congress that adding Australia and the United Kingdom would "allow the U.S. government to leverage the resources of its closest allies to enrich U.S. manufacturing and industrial base capabilities and increase the nation's competitive advantage in a highly competitive environment."


The Pentagon stated that relying solely on domestic or Canadian sources "unnecessarily restricts" the DPA program's capacity to "ensure a robust industrial basis."


A Pentagon official was unavailable for further comment at this time.


The U.S. mining industry's trade association, the National Mining Association, declined to comment.

RARE SOILS

The United Kingdom refines nickel and has many proposed lithium and rare earths processing facilities. Australia has mining and processing facilities for a variety of minerals, including iron ore, lithium, copper, and rare earths, a group of 17 metals used to create magnets that convert electrical energy into mechanical motion.


Lynas Rare Earths Ltd., based in Australia, was awarded a DPA grant of $30,4 million by the Pentagon in order to construct a processing facility in Texas in partnership with Blue Line Corp.


Amanda Lacaze, chief executive officer of Lynas, protested last month that the cash had not yet been distributed, citing continuing negotiations regarding the security of her company's intellectual property.


The Pentagon has also provided at least $45 million to MP Materials Corp, which owns the only rare earths mine in the United States but relies on China for processing.


The monies will support MP's attempts to resume processing of these important minerals in the United States. MP, based in Las Vegas, announced last week that it has begun receiving these monies and that the Pentagon will have "some rights to technical data" as a result.